Proprietary, technology driven acquisition screening tools designed to increase the efficiency of our acquisition process

Overview

Rose’s team balances deep relationships and basin experience with proprietary, technology driven acquisition screening tools designed to increase the efficiency of our acquisition process and to maximize the economic impacts of acquisitions. 

The Rocky Mountain region is an active acquisition and divestiture market with significant deal flow of working interests, particularly in the smaller end of the market.   Information for both buyers and sellers can be asymmetric and limited, which provides opportunity for the Company. Our acquisition evaluation tools, combined with our relationships and experience base, have the potential to provide advantage as we grow the company through deal flow.

While all potential acquisitions must be merited from a technical standpoint, there are also high level criteria that a project must meet.    Rose’s Board believes that the Company already has significant long-term appraisal and exploration exposure through its Paradox Basin asset, and as such will concentrate Company acquisition efforts on near-term development and production opportunities.  As part of this process, the Board has adopted the following high-level methodology for screening potential acquisitions based on the following factors, and all acquisitions will need to be consistent with the criteria listed below:

 

Geographic criteria:   Utah, Colorado or Wyoming (the “Rocky Mountain Region”)
Portfolio criteria:        Near term development (“PUD”)  or accretive producing (“PDP”) opportunities
Expertise criteria:      Prior management experience operating asset or similar assets
Cash flow criteria:        Cash flow generative within 12 months of acquisition
Entry criteria:              Proprietary acquisition angle (such as via land strategy, relationship, or unique view on upside opportunity) or uncommonly good value 
Partner validation:      Strategic financial or industry partner validation
Running room:             Growth potential for future development on the asset acquired or via options for additional acreage acquisition